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NRI Corner – FAQ’s

Frequently Asked Questions

NRI Corner – (FAQs)

Welcome to the NRI Corner. If you’re a Non-Resident Indian looking to invest in India, here are the answers to the most common queries.
1. Can NRIs invest in mutual funds in India?

Yes, NRIs (Non-Resident Indians) and OCIs (Overseas Citizens of India) can invest in Indian mutual funds. The investment can be made on a repatriable or non-repatriable basis using NRE or NRO accounts, respectively, and is governed by FEMA regulations.

2. What are the KYC requirements for NRIs?

To invest in mutual funds in India, NRIs must complete the KYC (Know Your Customer) process, which typically includes:

  • A valid passport copy

  • PAN card

  • Proof of overseas address and Indian address

  • Recent photograph
    KYC can be done online or through in-person verification depending on the fund house or platform.

3. Are there any tax implications for NRI mutual fund investments?

  • Yes. The applicable TDS (Tax Deducted at Source) depends on the fund type:

    • Equity Funds: 15% on short-term capital gains, 10% on long-term (above ₹1 lakh).

    • Debt Funds: 30% on short-term gains, 20% on long-term gains (with indexation).
      NRIs can also benefit from DTAA (Double Taxation Avoidance Agreement) depending on their country of residence.

4. Can NRIs invest through SIPs in Indian mutual funds?

Yes, NRIs can invest through Systematic Investment Plans (SIPs) just like resident investors. The SIP amount is auto-debited from their NRE/NRO bank account, and the investments are subject to RBI and FEMA guidelines.

5. Is there any restriction for US or Canadian NRIs in mutual fund investments?

Some Indian mutual fund houses restrict or limit investments from NRIs based in the USA and Canada due to FATCA compliance. However, several AMCs do allow investments after additional documentation and compliance checks.

6. Can NRIs repatriate their mutual fund gains?

Yes, if the investment is made through an NRE account, both the principal and gains are fully repatriable. Investments made via an NRO account are repatriable up to a certain limit (currently $1 million per financial year).

7. How does Lifeguide assist NRIs with financial planning in India?

Lifeguide offers:

  • End-to-end onboarding and KYC support

  • NRI-specific mutual fund recommendations

  • SIP/lump-sum investment setup

  • Tax-efficient planning

  • Periodic reviews & repatriation guidance

8. Can NRIs buy life or health insurance in India?

Yes, NRIs can purchase life and health insurance policies in India, subject to insurer terms and underwriting. Premiums must be paid in Indian currency, and medical tests may be required depending on the policy.

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